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ISLAMABAD: The Federal Board of Revenue (FBR) has released the procedure and collection of capital value tax (CVT).
The government through Finance Act, 2022 imposed capital value tax on sale of immovable properties and motor vehicles.
Following are the procedure and collection of the CVT.
Declaration of assets. – (1) Every person who is liable to pay capital value tax on assets mentioned in clauses (b) and (c) of sub-section (2) of section 8 of Finance Act, 2022 shall file the electronic declaration in Iris as set out in the Form- A attached to these rules.
(2) The value of foreign assets shall be converted in rupees as per ready transactions exchange rates for mark to market revaluation notified by the State Bank of Pakistan applicable for the last day of the tax year.
Statements to be filed by persons collecting capital value tax on motor vehicle. – (l) Every motor vehicle registration authority or a manufacturer or a person selling motor vehicle through auction liable to collect CVT in respect of motor vehicle in Pakistan shall furnish to the Commissioner a quarterly electronic statement in Iris as per schedule mentioned in sub-section (2) of section 165 of the Ordinance.
(2) Every person liable to collect CVT in respect of motor vehicle in Pakistan shall also furnish to the Commissioner an annual electronic statement in Iris for the relevant tax year within thirty days of the end of tax year, in addition to statement to be filed under sub-rule (1) of this rule.
(3) The provisions of sub-sections (2A), (2B) and (4) of section 165 of the Ordinance shall, in so far as relevant, apply to statements filed under this rule.
(4) The statement shall be filed in the manner as provided in Iris.
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Collection of capital value tax. (1) The tax required to be collected by a registration authority, manufacturer or a person selling motor vehicle through auction shall be paid by way of credit to the Federal Government through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form ‘B’ attached to these rules.
(2) The person required to pay tax in respect of foreign assets or assets specified by the Federal Government shall pay tax by way of credit to the Federal Government through a computerized payment receipt (CPR) at time the income tax return for the tax year is due for payment of tax on foreign movable assets, as set out in the Form ‘C-l’ and for payment of tax on foreign immovable assets, as set out in the Form ‘C-2’ appended to these rules.
(3) All sums being capital value tax collected under section 8 of the Finance Act, 2022, shall be paid by way of credit to the Federal Government by remittance into the government treasury or in the authorized branches of the State Bank of Pakistan or the National Bank of Pakistan, –
(i) on the same day in case these have been collected by or on behalf of government;
(ii) in other cases, such amount shall be paid within one week from the date of such collection.
from ARY NEWS https://ift.tt/zOvAGXr